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Information about lenovo

Published on April 14, 2008

Author: Silvestre

Source: authorstream.com

Lenovo purchase of IBM PC Division – IP and branding in Business Strategy:  Lenovo purchase of IBM PC Division – IP and branding in Business Strategy Peter Juul Jørgensen, Country General Manager Lenovo Denmark Original Lenovo: from humble beginnings…:  Original Lenovo: from humble beginnings… A vision to commercialize science and technology research results Starting business: to distribute and service imported PCs 11 founding members Initial seed investment of just 25K 1984 Slide3:  Mobile handsets Desktop PCs Tianyi notebooks Xuri notebooks Inkjet printers Cameras MP3 Players Desktops Notebooks Scanners LaserJet printers Servers Super computers HomeProducts Cell Phones Commercial Products Pre-acquisition: #1 IT company in China #1 IT brand in China, #3 brand overall #1 PC unit market share in Asia Pacific #1 PC unit market share in PRC for 8 years FY04: Revenue, $3B; Net Profit, $146M Lenovo Heritage *Source: IDC Worldwide Quarterly PC Tracker 4Q05. PC includes desktops, portables and x86 servers IBM PC Division Innovation:  IBM PC Division Innovation The IBM PC The ThinkPad The New Lenovo: Overview:  The New Lenovo: Overview $14B sales (last 12 months) 19,000 employees Principal operations: Raleigh, Beijing Public company with ownership positions by Lenovo Holdings, US Investor Group and IBM #3 worldwide share #1 market share in China Customer Value:  Customer Value Continued IBM Sales Coverage Global Business Partner Network Ease of Doing Business IBM Financing Innovative Products / Broader Portfolio World Class Service and Support IP was a very important asset category for the Transaction:  IP was a very important asset category for the Transaction Assignments of: Utility Patents, directly related to the PC Product Set Design Patents, protecting important Design Elements of PC Products Trademarks, used by PC System Products and Peripherals Copyright-protected Documentation and Software for the Business Technology / Know-How / Design IP / Trade Secret IP for the Business Plus, important IP owned by Lenovo in these same categories IP was an important facet of the Transaction Negotiations:  IP was an important facet of the Transaction Negotiations Appropriate subset of IBM’s large patent portfolio (Corporate Asset) Some prolific inventors in IBM’s Research Division and other IBM Divisions Some inventions by PCD technical staff were not related to PC’s How to arrive at the right business balance? How to craft this into agreement language? Similar challenges for assigned patent applications and invention disclosures Appropriate subset of IBM’s large software portfolio (Corporate Asset) Funding, creation, usage and expertise “ownership” varied Some SW wholly within PCD (easy negotiation) Some SW heavily shared, jointly developed, etc. (problematic) Some technologies shared by two or more IBM Divisions Some commonality among IBM’s several Hardware Businesses, such as low-end Servers, Embedded PC Systems, Point-of-Sale Systems Lenovo’s Worldwide IP has continued to Evolve :  Lenovo’s Worldwide IP has continued to Evolve New patents granted Ongoing Application & Invention Disclosure pipeline Portfolio strength in China, US, Japan, and many foreign counterparts Robust base of design IP Derivative works continue from divested PC “platform” IP New products emerge from Know-How IP Pre-existing IP+ Acquired IP+ Design Talent drives Product Innovation Further Trademark deployment and development Use of Think-related brands on products in China, and worldwide Introduction of Lenovo-branded products worldwide Protection of related brands and sub-brands as the product set evolves Value Proposition: Best Engineered PCs:  Value Proposition: Best Engineered PCs Shock-Mounted Hard Drive ThinkPad Roll Cage Active Protection System Jan Rescue and Recovery Biometrics with a Security Chip Best Keyboard Spill Proof Keyboard Brand health makes a big financial impact:  Brand health makes a big financial impact Returns Strong brands generate returns of 1.9% above industry average Weak brands generate returns of 3.1% below industry average Half of market value of Fortune 250 is in intangible assets Source: Brand Leverage Study, McKinsey Quarterly, 1999 (130 Companies) Buyers value the company behind the product:  Buyers value the company behind the product 5 4 3 2 1 Manufacturer brand PC functionality Delivery Customer support Financing Consultation in buying process Flexible warranty programs Value pricing Leading edge technology Worldwide Rankings Question: Please rate the importance of each of these vendor qualities when choosing a PC manufacturer. Source: 2005 Gartner SB/VSB Study Slide14:  Value Easy to buy Personal? Low price Design Easy to Use Outside of China, Lenovo has little recognition…. ? Clear brand positioning helps customers choose. Branding Strategy:  Branding Strategy Build Lenovo into a strong master brand known for innovation, customer service and high quality. Strengthen the ThinkPad product sub-brand. Slide16:  Phase 1 Deliver on the promise of Lenovo and on our commitments Increase our competitiveness through operational excellence, innovation, and branding Drive aggressive, profitable growth Phase 2 Phase 3 Lenovo’s Three-Phase Business Strategy Slide17:  Three Phases of Brand Building Maintain continuity and trust Strengthen the ThinkPad brand and introduce Lenovo Accelerate Lenovo Brand Building Leverage the IBM brand to maintain sales momentum. Emphasize ThinkPad brand; start to link it to Lenovo brand Move away from IBM and focus on Lenovo and ThinkPad 2005 2007 2006 Slide18:  Phase 1 Maintain continuity and trust Actions Great products Leverage IBM support and sales Show IBM logo in product photos Signoff advertising with ThinkPad Extensive PR Results #1 customer satisfaction Continued regard for ThinkPad Maintained sales momentum High share of press (positive) Phase 1 Advertising:  Phase 1 Advertising Emphasize quality and innovation ThinkPad signoff Visible IBM logo Lenovo intro Slide20:  Phase 2 Actions More great Think products “ThinkPad Unleashed” campaign Torino Olympics Introduce Lenovo-branded products Viral activities Results Lenovo starting to be viewed as making ThinkPad better ThinkPad metrics strong Lenovo awareness growing Strengthen the ThinkPad brand, and introduce Lenovo brand Slide22:  Phase 3 Accelerate Lenovo Brand Building Activities Clear, ownable positioning Formula One and Olympics PR Add Lenovo logo to Think products Exciting products Brand internalization Corporate Social Responsibility Results Expected #1 Customer Sat Stronger Lenovo Brand Increase ThinkPad strength ”Green PC’s”:  ”Green PC’s” ”Green PC’s”:  ”Green PC’s” Why the Olympic Games?:  Why the Olympic Games? Sports marketing is a broadband solution for brand-building Innovation and technology are crucial in the operation of properties Worldwide sponsor of the Olympic Games Formula One Business opportunities with properties and their partners Reach from C-level officers to consumers Olympic Games are far-reaching An estimated 4 billion tv viewers worldwide will watch the Beijing Olympic Games The Olympic Games offer a showcase for our technology Olympic Torch Relay: Key Moments in Time:  Olympic Torch Relay: Key Moments in Time Apr 2008 Mar 2008 Jan 2008 Jun 2007 May 2007 Apr 2007 Champions OTR Media Tours – Design Tour Flame Lighting Ceremony Begin Pitching Torchbearer Stories Call for Torchbearers Announce – Oct completion Mt. Everest Test Event - Reactive OTR Sponsor/ Torch Design Announcement International Relay Launch Lenovo Publicity/ Viral Programs Brand Attributes, Company and Products:  Brand Attributes, Company and Products Innovative High Quality and Reliability Service Excellence Success/Prestige Rock Solid* Lowest TCO Think Family The Ultimate Business Tool 3000 Family The Smart Choice Worry-free Great Value Exciting/Stylish Lenovo’s Common Attributes * Highest Quality, Reliability and Security Value Proposition We help customers succeed by providing them a smarter way to be more productive Value Proposition: We help customers achieve their work and personal goals by providing them exciting, affordable and worry-free PCs. Slide30:  backup New World Culture:  New World Culture From West to East Worldwide management savvy B2B marketing skills Design and engineering strengths Values Shared Values Focus on Innovation People development “Lenovo will boast a rare combination of management savvy, technical expertise, low costs, and proven track record in the developing world.” Brand Positioning: :  Brand Positioning: Product Map Commodity Innovation Few Everyone Putting more innovation in the hands of more people so they can do more amazing things. Slide33:  Ownership 43,2% Lenovo Group Ltd. (HKSE Listed) Chinese Academy of Sciences 65% Employees’ Shareholding Society 35% Lenovo’s Global Operations:  Lenovo’s Global Operations RTP Beijing Principal Operations Sales Headquarters Paris Sydney

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